Why does higher worker productivity not necessarily mean GDP per capita will rise? O GDP per Capita depends on income, and not on worker productivity. O Workers might choose more leisure time instead of work, keeping total production the same but reducing hours worked. O Higher productivity does not necessarily translate to higher output, since employers may not give salary increases. O Workers might be more productive, but that doesn't mean GDP per Capita will go up unless they work more hours.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...
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Why does higher worker productivity not necessarily mean GDP per capita will rise?
GDP per Capita depends on income, and not on worker productivity.
O Workers might choose more leisure time instead of work, keeping total production the same but reducing
hours worked.
O Higher productivity does not necessarily translate to higher output, since employers may not give salary
increases.
O Workers might be more productive, but that doesn't mean GDP per Capita will go up unless they work more
hours.
Transcribed Image Text:Why does higher worker productivity not necessarily mean GDP per capita will rise? GDP per Capita depends on income, and not on worker productivity. O Workers might choose more leisure time instead of work, keeping total production the same but reducing hours worked. O Higher productivity does not necessarily translate to higher output, since employers may not give salary increases. O Workers might be more productive, but that doesn't mean GDP per Capita will go up unless they work more hours.
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